Based on Gomory and Baumol’s work, how should the
United States handle its trade
relations with China?
1. It should take measures to compete
with China every step of the way, for losing its
advantages could spell disaster.
2. It should accept that China will impact on
its economy to a certain
point, but
then fight to
protect its own industries after that.
3. It should welcome wage equity, for wealthy Chinese
workers will provide new markets for
American products.
4. It should encourage the loss of underdeveloped sectors to China,
but do its best to protect the
more developed parts of the economy.
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